What To Do With Those Old 401(k)s
November 1, 2023 •
Whatever happened to that old 401(k) at your first job? Today, learn how to manage old employer retirement plans. Throughout this episode, gain insight into the various paths you can take with accrued retirement balances from past employment ventures. Jason reviews the options available to you, discussing the benefits and drawbacks of each to aid you in making informed choices regarding your retirement nest egg. As the conversation unfolds, you’ll be acquainted with options such as retaining the plan with its current status, merging it into a new employer’s arrangement, shifting it to an IRA, or opting for a lump sum withdrawal.
Tune into this episode to also learn:
- What are the pros and cons of leaving your 401K balance with your old employer?
- How can transferring your retirement plan to an IRA benefit you in the long run?
- What should one consider before opting for a lump sum withdrawal from their retirement plan?
What we discussed
[00:00:46] Options and considerations for managing old 401K plans
[00:02:52] Pros and cons of rolling old 401K into new employer’s plan
[00:05:52] Lump sum withdrawal pros and cons including potential taxes and penalties
[00:7:51] Exploring retirement plan options post-employment
3 Things To Remember
- Navigating the management of old employer retirement plans offers several paths, each with its unique set of advantages and downsides, which can be meticulously weighed to make an informed decision.
- A key decision point in managing your 401K balance from previous jobs includes evaluating options such as retaining it where it is, initiating a rollover into a new employer’s plan, transferring it to an IRA, or extracting it as a lump sum.
- Making a prudent choice concerning your retirement savings now can set a firm foundation for financial security in the later stages of life, and consulting with an expert can be a step toward making an informed decision.
Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn
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Michael
Michael Pallozzi, AIF
How can you have fewer questions from your employees and better outcomes during plan changes? By starting with clear communication.
Disclosure: HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
